Denver residents willing to ride light rail
Investment OFF-Market Analysis: Did Corona Kill Public Transit in Denver? Rent Returns Too? Vaccine BreathsLife Back Into RTD… Survey Results May Surprise!
A recent survey in Denver, Colorado found no increase in property value when the house was within 4 blocks of a light rail station.
A follow-up survey that measured Denver resident’s willingness to travel on public transport post-Corona Virus gave further insight.
INTRODUCTION: It has been a long belief among investors that property with access to light rail has a positive impact when measured by value.
Research results vary but generally find that rail transit has a positive impact on residential property values. A study in Portland, OR found property value increased by $75 for every 100 feet closer to a station. In New York prices increased $2300 for every 100 feet closer. In San Diego, a positive impact on house prices can also be seen. These houses sold for $272 more for every 100 meters closer.
However, the same can’t be said of Sacramento or New Jersey where no property value increases could be measured. Another study in Portland found roughly 4 blocks no price increase can be measured.
Many experts believe the impact light rail has is proportional to traffic congestion. More congestion equals a great impact on the overall quality of life in Denver.
Does Proximity to Light Rail in Denver Change Property Value?
When it comes to a measurable benefit to property value or rent returns that has been hard to determine. We looked at property value appreciation on Denver’s W line that runs from Downtown Denver to Golden, traveling through the heart of Lakewood.
What we did:
Watson Buys employed the services of a 3rd party company to do the research for us.
Homes were separated sold properties into 2 categories. Houses sold within 4 blocks of a station and houses sold that are not within 4 blocks.
Why We did this:
We performed this study to provide insight into possible future market conditions in Denver because we buy Denver real estate for investment purposes. Understanding whether or not light rail has a positive impact will dictate future purchases of property, in and around Denver, by our team. We are sharing this as we feel it is useful for other property owners and real estate investors in Denver.
Results:
No difference in appreciation of property value was found between the 2 groups over a 5 year period.
Expert Insight:
We believe that Denver does not have a significant enough traffic issue to drive more people to ride Light Rail. Therefore light rail does not positively impact property values in Denver.
We believe that as the population in Denver grow (expected to double in 20 years, the impact light rail has will be more easily measurable.
For further analysis and insight be sure to check out the full article produced by local Denver property group WatsonBuys.
A subsequent survey on Denver residents gave us a possible reason why light rail proximity is not positively affecting the price of houses. This is discussed in the research results and analysis.
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Watson Buys Insight Into Light Rail and Impact on Denver House Prices
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